NAIRAXI, a tech-driven mobility company, and its partner Firstplus have unveiled a digital system aimed at supporting mass transportation in the Federal Capital Territory (FCT) of Nigeria. The introduction of this system comes as a response to the removal of fuel subsidies and the need to cushion its effects on Nigerian citizens.
The removal of fuel subsidies has been a significant policy change, with President Bola Tinubu explicitly stating its elimination during his inauguration speech. To alleviate the challenges faced by Nigerians due to this policy change, NAIRAXI and Firstplus believe that a private sector-driven approach to digitizing mass transit systems is crucial.
Yusuf Umar, chairman of Firstplus, highlighted the importance of working with the FCT Administration to alleviate the impacts of fuel subsidy removal. The mass transit scheme introduced by NAIRAXI and its partners aims to transform the transportation landscape in Nigeria, benefiting the Nigerian people.
Kingsley Eze, co-founder of NAIRAXI, emphasized that the initiative will improve access to affordable transport services. The Automated Fare Collection system developed by NAIRAXI enables the use of contactless smart cards as cashless payment instruments in public transportation modes. This system allows for effective subsidy of mass transportation by governments while generating substantial revenue.
NAIRAXI is partnering with other road transport operators and state governments to introduce technology into mass transit systems. Through the implementation of technology, the initiative aims to enhance payment systems, accessibility, automated fare collection, security, and monitoring for sustainable management. The introduction of the Auto-fare Collection system (AFCS) and user smart card (USC) will track transaction and payment history, addressing issues of corruption and fraudulent activities in fare collection.
The initiatives introduced by NAIRAXI and Firstplus will help mitigate the economic impact of fuel subsidy removal by providing customized electronic transit cards and subsidizing mass transportation on behalf of the government. These efforts are aimed at improving the overall welfare of the Nigerian population during this transition period.
Elizabeth Omale, co-founder and COO of NAIRAXI, expressed confidence that the initiative will revolutionize Nigeria’s transport sector and help alleviate the challenges created by fuel subsidy removal. NAIRAXI, as a homegrown indigenous app, aims to make a significant difference in the transport sector and tap into the vast potential within the industry.
The introduction of this digital system and the commitment of NAIRAXI and its partners to revolutionize the transportation sector in Nigeria highlight the innovative solutions being developed to address the challenges posed by fuel subsidy removal and improve the overall transportation experience for Nigerians.
